KANSAS CITY, Mo. – A Lexington, Mo., business owner was sentenced in federal court today for failing to pay over to the IRS nearly $1.7 million in payroll taxes.

Randy K. Small, 51, of Lexington, was sentenced by U.S. District Judge Gary A. Fenner to three years in federal prison without parole. The court also ordered Small to pay $1,694,725 in restitution.

On June 20, 2017, Small pleaded guilty to failure to pay over to the IRS the payroll taxes of his employees.

Small is the owner of RSB Leasing, a transportation business that has provided school bus service to multiple school districts in Missouri (including the Buchanan County R-IV School District, the Lexington, Mo., R-5 School District and the Hardin-Central C-2 School District). Small operated the business under three different names, and failed to fully pay employment taxes for each of the three businesses. At the time of his guilty plea, Small admitted that his criminal conduct resulted in an aggregate tax loss of at least $1,457,483.

According to court documents, however, Small has continued to violate tax laws since his change-of-plea hearing. IRS investigators uncovered $237,242 in additional tax harm for employment taxes that were not paid over to the IRS for employees of RSB Leasing, resulting in a total tax liability amount of $1,694,725.

Small operated the business under the name Hill Transportation, Inc., from 2005 through February 2010. After accruing over $300,000 in employment tax liability, Small discontinued operations under Hill Transportation and began operating under the name SPYKE, LLC. After accruing over $1 million in employment tax liability, Small discontinued operations under SPYKE in 2012. Finally, Small operated under the name RSB Leasing which has continued to accrue tax liability.

Small admitted that he did not deposit the Federal Insurance Contributions Act and Medicare (FICA) taxes or the income taxes that he withheld from his employees’ wages, nor did he pay the employer portion of FICA.

While accruing employment tax liabilities, Small withdrew significant amounts of cash, purchased new buses and maintained a personal collection of cars. From 2009 through 2011, Small withdrew $286,052 from the business bank account in the form of cash and cashier’s checks payable to himself. Small spent an additional $147,000 to purchase new buses for the business.

During the time period when Small was not paying his taxes, he purchased and maintained a 1998 Lamborghini Diablo SV. On April 13, 2017, about two months prior to his guilty plea, Small sold the Lamborghini for approximately $115,000 and had the proceeds from the sale wired to the business bank account of RSB Leasing. Small failed to disclose the transaction to the government and he has not used any of the proceeds to pay the taxes he owes. Instead, according to documents provided by the IRS, Small engaged in a series of banking transactions to further conceal the proceeds and evade payment to the IRS.

According to court documents, Small filed for bankruptcy with the intent to hinder the collection efforts of the IRS and obstruct the IRS’s ability to collect payment from the foreclosure sale of a parcel of land. The bankruptcy petition was dismissed on Oct. 30, 2017.

This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by IRS-Criminal Investigation.
 

WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that today United States District Court Judge A. Richard Caputo sentenced Michael Mejia, age 21, who resided in Wilkes-Barre, Pennsylvania, to a time-served sentence of approximately six months of imprisonment and two years of supervised release.

According to United States Attorney David J. Freed, from approximately May 11, 2017 through August 23, 2017, Mejia conspired with others to steal checks from mail receptacles throughout Luzerne County, deposit the checks into accounts under their control, and withdraw the funds in cash.  As part of the sentence, Judge Caputo also ordered Mejia to pay $16,310.91 to the victims of his crimes.

The investigation was conducted by United States Postal Investigators.  Assistant United States Attorney Phillip J. Caraballo prosecuted the case.

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A Guatemalan man who illegally returned to the United States after having been deported following a felony conviction was sentenced today to 22 months’ in federal prison.

Benjamin Aguilar-Ramirez, age 35, a citizen of Guatemala illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a January 11, 2018, guilty plea to one count of illegal reentry into the United States following a felony conviction. 

At the guilty plea, Aguilar-Ramirez, an illegal alien, admitted that he was deported from the United States on May 5, 2017, and that he illegally reentered the United States without the permission of the United States government.  Aguilar-Ramirez was previously convicted on March 8, 2017, in the United States District Court for the Northern District of Iowa of one count of unlawful use of identification documents and one count of misuse of a social security number, both felonies.  On the document fraud convictions, Aguilar-Ramirez was sentenced to 114 days’ imprisonment and a three-year term of supervised release.  On November 13, 2017, Aguilar-Ramirez was found by immigration officers at the Black Hawk County Jail in Waterloo, Iowa, following his arrest for violating a State of Iowa No Contact Order. 

Aguilar-Ramirez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Aguilar-Ramirez was sentenced to 16 months’ imprisonment on the illegal reentry conviction.  Aguilar-Ramirez was also sentenced to 6 months’ imprisonment for violating the terms of his supervised release on the document fraud convictions.  The terms of imprisonment are to be served consecutively.  He must also serve a three-year term of supervised release on the illegal reentry conviction after the prison term.  There is no parole in the federal system.

Aguilar-Ramirez is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file numbers are 16-CR-2055-LRR and 17-CR-2089-LRR.

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ROCK ISLAND, Ill. – Two East Moline, Ill., men, who were convicted in November for attempted armed robbery of a Rock Island home, were sentenced today. U.S. District Judge Sara Darrow ordered that Dalvent Jackson, 25, serve 30 years in federal prison. Deaunta Tyler, 30, was sentenced to 27 years, six months in prison. Co-defendant Ledell Tyler, 36, of Silvis, is scheduled to be sentenced on June 29, 2018.

A jury convicted each of the men on Nov. 15, 2017, of attempted robbery, discharging a firearm in furtherance of the attempted robbery, and being felons in possession of firearms. Evidence presented at trial established that on the evening of Jan. 7, 2017, the three men invaded a family home in Rock Island in search of drugs. During the attempted robbery, the defendants threatened to shoot various occupants of the home, including two pregnant women and several young children. Trial evidence also established that one of the men discharged a firearm during the robbery in an effort to further intimidate the victims. Approximately five hours after the attempted robbery, officers of the Rock Island Police Department arrested the men after they fled from a traffic stop and crashed their vehicle. 

The Rock Island Police Department investigated the charges.  Law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Illinois State Police also assisted in the investigation and testified at trial.  The case was prosecuted by Assistant U.S. Attorneys Don Allegro and Kevin Knight.

PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics and unlawful possession of firearms, United States Attorney Scott W. Brady announced today.

Elliot Page, 37, pleaded guilty to one count of conspiring with 20 other individuals, between March and August of 2017, to distribute narcotics and one count of possession of a firearm by a convicted felon. In connection with the guilty plea, the court was advised that Page supplied fentanyl to his codefendants, Skyler Carter and Cecil Shields, and others, for further distribution in the Clairton area, and that approximately one kilogram of fentanyl and three firearms were seized during the execution of a federal search warrant at Page’s residence on July 6, 2017. Page has three prior felony drug offenses and was forbidden from possessing a firearm. He is the 14th of 21 defendants charged in the case to plead guilty.

Judge Arthur J. Schwab scheduled sentencing for September 19, 2018, at 10:30 a.m. The law provides for a maximum total sentence of not less than 20 years to life imprisonment, a fine of $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Page remains on incarcerated the sentencing hearing.

The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

John H. Durham, United States Attorney for the District of Connecticut, announced that DARIS SNOW, also known as “Eagle,” 25, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for participating in the armed robbery of a Hamden store in April 2016.

According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden.  One of the men pulled out a gun and ordered the store’s three employees to get down on the ground.  The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case.  The employee complied and the four suspects took several items, including cellular telephones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830.  The four ran out of the store to a waiting car.

Investigators subsequently identified SNOW, Rashon Gray, Tracey Biggs and Keara Northrup as the individuals who committed the armed robbery of the store.  Gray brandished the firearm and threatened the store employee, SNOW pretended that he had a gun and took the cash box, and Biggs and Northrup stole merchandise.  Investigators also learned that SNOW made threatening statements to and about one of the women who participated in the robbery with him.

SNOW has been detained since his arrest on June 2, 2017.  On November 27, 2017, he pleaded guilty to one count of Hobbs Act Robbery

Gray, Biggs and Northrup all pleaded guilty to related charges.  On April 9, 2018, Gray was sentenced to 77 months of imprisonment.  Biggs and Northrup await sentencing.

This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.

CORPUS CHRISTI, Texas – A 44-year-old Richardson man has been ordered to federal prison following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Michael Cipriano pleaded guilty Dec. 18, 2017.

Today, Senior U.S. District Judge John Rainey sentenced Cipriano to 210 months imprisonment followed by five years of supervised release.

On July 26, 2017, law enforcement officers had received information that a vehicle would be travelling from Dallas to deliver methamphetamine to a location in Corpus Christi. As agents were conducting surveillance, Cipriano arrived at the location, at which time officers attempted to conduct a traffic stop of the vehicle. He then quickly fled the location, but Cipriano was quickly apprehended a short distance away without incident.

When officers searched the vehicle, they discovered a large plastic bag that contained a white crystal substance, which tested positive for methamphetamine. Laboratory analysis confirmed the substance had a purity of 97% and contained 967 grams of pure methamphetamine.

Cipriano has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.

The Drug Enforcement Administration, Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt is prosecuting the case.

ALBUQUERQUE – Michael Dwain Samples, 26, of Monahans, Tex., was sentenced this morning in federal court in Las Cruces, N.M., to 120 months in prison for his conviction on drug trafficking and firearms charges.  Samples will be on supervised release for five years after completing his prison sentence.

The sentence was announced by U.S. Attorney John C. Anderson, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso and Chief Pete N. Kassetas of the New Mexico State Police.

“The everyday work of state and local law enforcement officials is a critical component in protecting our communities from the harmful impact of drugs.  In this case, exceptional work by state police turned a routine traffic stop into a major federal drug trafficking prosecution,” said U.S. Attorney John C. Anderson.  “The outstanding partnerships that we have between federal and state law enforcement officials in New Mexico is a force multiplier in our efforts to make our communities safer for our families and friends.”    

“Homeland Security Investigations is committed to combating narcotics trafficking and other public safety threats impacting the citizens of New Mexico, said Acting Special Agent in Charge Jack P. Staton of HSI in El Paso.  “Working with the New Mexico State Police, this investigation took dangerous drugs and firearms off the streets of eastern New Mexico.”

New Mexico State Police Chief Pete Kassetas said, “It is a priority of the New Mexico State Police to keep drugs and criminals off the streets of New Mexico.  This case is one example of many in which law enforcement has done its job to prevent dangerous drugs and firearms from entering our communities. We will remain resolute in our commitment to finding these criminal elements and enforcing laws to keep our communities safe.”

Samples’ co-defendant Nicolas Robert Muniz, 26, also of Monahans, Tex., was charged by criminal complaint on June 5, 2017, after law enforcement officers seized approximately 504 grams of methamphetamine, 50 grams of marijuana, and firearms and ammunition from Muniz’s vehicle following a routine traffic stop.  During the traffic stop, the officers deployed a drug detection canine on Muniz’s vehicle after observing that Muniz was acting in a suspicious and nervous manner.  The officers searched the vehicle and found the drugs after the canine alerted the officers to the presence of controlled substances in the vehicle.

Samples and Muniz were subsequently charged in a six-count indictment on Sept. 13, 2017.  Samples and Muniz were charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute.  Muniz was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime.  Samples was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime.  According to the indictment, the defendants committed the offenses on May 16, 2017, in Lea County, N.M.  Samples and Muniz were prohibited from possessing firearms or ammunition because of their statuses as convicted felons.

On Oct. 31, 2017, Samples pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and being a felon in possession of a firearm and ammunition.  In entering the guilty plea, Samples admitted that on May 16, 2017, he traveled from Monahans, Texas, to Carlsbad, to purchase approximately 469 grams of methamphetamine with the intention of distributing the methamphetamine to others in exchange for money.  Samples further admitted that on May 16, 2017, he was in possession of a firearm and ammunition despite his status as a convicted felon. 

On Jan. 16, 2018, Muniz pled guilty to a four-count felony information charging him with conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, being a felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime.  In entering the guilty plea, Muniz admitted that on May 16, 2017, he agreed to drive Samples from Monahans, Texas to Carlsbad, N.M., to purchase approximately 469 grams of methamphetamine.  Muniz further admitted that there was a firearm loaded with several rounds of ammunition under Muniz’s seat in the vehicle Muniz was driving.  Muniz admitted that he possessed the firearm and ammunition despite his status as a convicted felon on May 16, 2017, for protection and in furtherance of his drug trafficking activities.  Muniz remains in custody pending a sentencing hearing which has yet to be scheduled.   

This case was investigated by Homeland Security Investigations and the New Mexico State Police.  Assistant U.S. Attorneys Brock E. Taylor and Joni L. Autrey of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.

ATLANTA - Daveon Brantley, a/k/a Swalay, and Amber Brinson were sentenced today to 22 years, one month and nine years, seven months, respectively, for sex trafficking a 13-year-old girl after she ran away from home.

“This couple trafficked a 13-year-old girl for commercial sex who they knew was a vulnerable runaway,” said U.S. Attorney Byung J. “BJay” Pak.  “We will continue to prosecute those who prey on and exploit children for commercial sex and we are leveraging partnerships with federal, state and local law enforcement, and non-governmental organizations to achieve justice and provide support services for the survivors of these crimes, as well as for their families.”  

“Thanks to our partnership with local law enforcement agencies and the willingness of a witness to come forward with information, the 13-year-old child was recovered safely and removed from a horrible situation,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Stopping human trafficking remains a top priority of federal, state and local agencies who are part of the FBI’s Metro Atlanta Child Exploitation Task Force (MATCH).”

According to U.S. Attorney Pak, the charges and other information presented in court: Brantley encountered the 13-year-old victim after she ran away from home.  Brantley invited the child to his hotel room on Fulton Industrial Boulevard in Atlanta and directed his then-girlfriend, Brinson, to take nude photos of the child. Brantley and Brinson posted nine advertisements for sex with the minor on the website Backpage.com over several days in early June 2016.  The advertisements included nude photos of the girl. Brantley and Brinson proceeded to use the child for commercial sex acts for six days.  Brantley took the money that the minor victim earned. The Acworth Police Department recovered the minor from a hotel on June 7, 2016, after an acquaintance of Brantley’s and Brinson’s called the police and reported the location of the victim.  

Daveon Brantley, a/k/a Swalay, 27, of Atlanta, Georgia, was sentenced to 22 years, one month in federal prison, to be followed by 15 years of supervised release, and ordered to pay restitution in the amount of $1,440. Brantley pleaded guilty to conspiracy to commit, and commission of, sex trafficking of a minor, production of child pornography, and distribution of child pornography on January 9, 2018.

Amber Brinson, 21, of Atlanta, Georgia, was sentenced to nine years, seven months in federal prison, to be followed by seven years of supervised release, and ordered to pay restitution in the amount of $1,440. Brinson pleaded guilty to conspiracy to commit sex trafficking of a minor on November 3, 2017.

Both defendants must register as sex offenders as a condition of their supervised release.

This case is being investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force (MATCH).

Assistant United States Attorney Jolee Porter prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

DALLAS— Robert Joseph Marano, 53, of Dallas, Texas, appeared in federal court this morning before U.S. Magistrate Judge Rebecca Rutherford and pleaded guilty to one count of mail fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. 

In March 2018, both Marano and Paul Anthony Dominguez, 32, of Carrollton, Texas, were charged in a felony information with a one count of mail fraud scheme.  Dominguez pleaded guilty earlier this month to the same mail fraud scheme and is scheduled to be sentenced July 25, 2018. Marano is scheduled to be sentenced on August 1, 2018.

Both Dominguez and Marano face a maximum statutory penalty of twenty years in federal prison and a $250,000 fine.  Restitution could also be ordered.  Dominguez and Marano will remain on bond while awaiting their sentencing hearings.

According to filed plea documents, Dominguez and Marano contacted client contractors with a proposal to collect outstanding unpaid debts of former customers of the contractor client. During the period from about March 2015 through December 2016, Dominguez and Marano caused at least 200 client contractors to sign an agreement in which the client contractors authorized the defendants to release liens filed by the client contractor in exchange for the payment of unpaid debts by former customers. Dominguez and Marano also falsely represented to client contractors that defendants would collect funds from delinquent clients, retain a commission fee, and then send the balance of the collected funds to the contractor client.

Dominguez and Marano later contacted many former customers of the contractor client. These former customers were delinquent in payment of debts to the contractor clients. Dominguez and Marano fraudulently caused these former customers to send settlement checks to a business controlled by Dominguez and Marano. Dominguez and Marano also stole funds from their client contractors when they unlawfully cashed these former customer checks, but failed to pay their contractor clients the total settlement amount owed.

The defendants preyed on the financial desperation of these client contractors who were owed large sums of money from former customers. The defendants deceived these client contractors by falsely representing to the client contractors that the defendants would honestly collect and pass on funds collected from former customers.

Dominguez and Marano defrauded at least 200 client contractors across the United States and received over $2 million dollars in settlement funds from former customers of the client contractors.  The felony information alleged that Dominguez and Marano spent these stolen funds to support their lavish lifestyle, including trips to Las Vegas, Hawaii and Miami, as well as the purchase of two 2016 Harley Davidson motorcycles, a 2016 Kawasaki motorcycle, a 2015 Toyota Tundra, and a 2015 Corvette Stingray.

This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative, United States Attorney’s Office, Northern District of Texas.  These bankruptcy prosecutions were identified and investigated from a larger number of criminal referrals regularly made to this office by the United States Trustee’s Office, Dallas, Texas.  Since 2013, these focused bankruptcy prosecutions have resulted in 27 convictions of individuals engaged in various types of fraudulent conduct within the United States Bankruptcy Courts.

The United States Postal Inspection Service, Fort Worth, Texas investigated the case.  Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

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KANSAS CITY, Mo. – A Kansas City, Mo., woman has been sentenced in federal court for  a fraud scheme in which she embezzled more than $1 million from her employer.

Janee C. Rosenthal, 56, of Kansas City, was sentenced by Chief U.S. District Judge Greg Kays on Friday, April 13, 2018, to three years and two months in federal prison without parole. The court also ordered Rosenthal to pay $1,097,000 in restitution.

On Sept. 22, 2017, Rosenthal pleaded guilty to two counts of mail fraud and two counts of wire fraud.

Rosenthal worked as a controller and later as a division director for Firestone Optics, Inc., as wholesaler of contact lenses located in Kansas City, Mo. Rosenthal admitted that she embezzled $1,097,448 from the company over an approximately nine-year period from June 2007 to May 2016 in order to pay down balances on her personal credit card account. She used the funds for travel (including a Norwegian cruise), dining, house expenses, clothing, entertainment (including tickets for the Kansas City Royals and the Kansas City Chiefs), utilities, vehicle and fuel expenses, health and cosmetics, groceries, taxes, computer and electronics, jewelry and pet expenses.

Rosenthal issued and signed checks drawn on the company’s bank account and made payable to her personal credit card account. She also made wire fund transfers from the company’s bank account to her personal credit card account for personal goods and services that had been charged on her credit card. Rosenthal, who made 88 fraudulent transactions as part of her scheme, falsely represented in Firestone Optics’s accounting ledgers that certain of her personal expenditures were legitimate business expenses.

As of the date of the sentencing hearing, according to court documents, Rosenthal has not made a single payment towards the amount she owes her victims nor has she offered an apology to them.

This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the FBI.
 

An indictment was unsealed today in federal court in Brooklyn, charging 12 members and associates of the Mac Baller Brims, a subgroup or “set” of the nationwide Bloods street gang (the “Mac Ballers”), with conspiracy to distribute and possess with intent to distribute crack cocaine and heroin.  The alleged crimes were committed in and around the Louis H. Pink Houses in the East New York neighborhood of Brooklyn (the “Pink Houses”), as well as in the Claremont and University Heights neighborhoods of the Bronx and locations in the state of Maine.  A second indictment, charging Hassen Ford with distributing crack cocaine in the Pink Houses, was also unsealed today.  This morning, during the execution of search warrants at locations tied to the Mac Ballers in Brooklyn and the Bronx, members of law enforcement seized two firearms, quantities of heroin and crack cocaine, and drug paraphernalia.  A starter pistol was also seized from Ford’s residence.  The defendants’ arraignments are scheduled this afternoon before United States Magistrate Judge Cheryl L. Pollak.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictments.

“As alleged in court filings, the defendants are members of a Bloods set that has endangered communities by supplying illicit drugs and protecting their trafficking operation with firearms,” stated United States Attorney Donoghue.  “Today’s arrests mark a milestone in dismantling the Mac Baller Brims and the threat they have posed to law abiding citizens in our District and beyond.”

“There is an odd glamorization of dealing drugs, firing guns and killing people in gang culture that defies comprehension.  Someone allegedly bragging about almost going to jail because he was going to shoot someone shouldn’t be an accepted form of conversation or behavior,” said FBI Assistant Director-in-Charge Sweeney.  “The FBI NY Metro Safe Streets Gang Task Force investigates gangs and arrests members because they pose a significant danger to the people in their communities.  We are fully invested in the pursuit of these violent offenders who think it’s cool to threaten someone’s life.”

“Today’s arrests bring a dangerous set of blood gang members off our streets,” stated NYPD Police Commissioner O’Neill. “My thanks to the detectives, agents, and prosecutors whose work made today’s arrests and charges possible.”

As alleged in the indictments and other court filings, the defendant Kevin St. Hill was responsible for drug and gun-related crimes in the Pink Houses and is also a ranking member of the Mac Ballers.  St. Hill received his drug supply, in part, from the defendant Mario Rabb, a Mac Baller member who sold crack cocaine and heroin on Webster Avenue in the Bronx.  Rabb also supplied Mac Baller members Felix Collazo and Malcolm Hogue with quantities of drugs.  The drug-trafficking operation was responsible for the distribution of significant amounts of crack cocaine and heroin in Brooklyn and the Bronx, as well as heroin in Maine.

Court-authorized wiretaps on phones used by several defendants confirmed that Lavon Barrett holds the highest-ranking position among non-incarcerated Mac Ballers, having been appointed as the “Don,” or leader, for “the whole t[o]wn” in late December 2017, and that St. Hill was appointed to oversee the Mac Ballers’ operations in Brooklyn.  In other intercepted conversations, members of the gang related accounts of their using firearms and violence to protect their interests.  For example, in a series of calls in November 2017, St. Hill threatened a group of individuals with a firearm (referred to as a “hammer”) in the Pink Houses:  Barrett called codefendant Shatavia Walls and asked her to “bring the hammer downstairs.”  Subsequently, Barrett recounted how close he came to actually shooting: “I was about to be in jail because I was about to fire.”  In yet another intercepted call, Barrett and Collazo discussed Collazo’s need to get ammunition for his firearm “ASAP” because he had to “take care of something.”  After offering Collazo bullets from Barrett’s firearm, Collazo promised he was going to “make a statement” and bragged about the resolve of the gang’s members to protect their turf:  “Can’t f*** with the Macs” because Mac Ballers will “die for this sh**, ride for this sh**, and let it fly” – or shoot – “for this sh**.” 

The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of the most serious charges, the defendants Barrett, Berthely, Collazo, Gethers, Rabb, Kevin St. Hill and Shawn St. Hill each face a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Margaret Gandy and Andrey Spektor are in charge of the prosecution.

The Defendants:

LAVON BARRETT
Age:  31
Hempstead, New York

MATTEW BERTHELY
Age: 32
Brooklyn, New York

FELIX COLLAZO
Age: 37
Bronx, New York

DWAYNE DAVIS
Age: 29
Brooklyn, New York

STEVEN GETHERS
Age: 31
Bronx, New York

TERRY HEARD
Age: 50
Bronx, New York

MALCOLM HOGUE
Age: 25
Bronx, New York

MARIO RABB
Age: 45
Bronx, New York

KEVIN ST. HILL
Age: 32
Brooklyn, New York

SHAWN ST. HILL
Age: 32
Brooklyn, New York

SHATAVIA WALLS
Age: 30
Brooklyn, New York

CHARLES WARD
Age: 41
Bronx, New York

E.D.N.Y. Docket Nos. 18-CR-185 (FB)

HASSEN FORD
Age: 43
Brooklyn, New York

E.D.N.Y. Docket Nos. 18-CR-183 (AMD)

ALBANY, NEW YORK – Timothy J. Oravec, age 59, of Poughkeepsie, New York, was arrested today on charges that he defrauded the United States Department of Housing and Urban Development (HUD) and some of its employees by falsely claiming to have cancer, and obtaining and using leave time donated to him by his colleagues.

The announcement was made by United States Attorney Grant C. Jaquith and Christina Scaringi, Special Agent in Charge for HUD’s Office of Inspector General (OIG), Northeast Region.

Oravec worked for HUD in Albany. The indictment alleges that in 2013, Oravec falsely told his supervisors and coworkers at HUD that he had been diagnosed with cancer and would need to be absent from work as a result.  Oravec was approved as a recipient of donated leave as part of a voluntary leave transfer program operated by HUD.  Other HUD employees donated 694 hours of their vacation time to Oravec.  He used most of the donated vacation time to miss work, while being paid over $24,000 in salary.

The indictment also alleges that, as part of the scheme, Oravec fabricated letters from multiple medical providers and gave those fabricated letters to his supervisors at HUD.  Those letters purported to describe Oravec’s treatment for cancer.  In fact, Oravec was not under the care and treatment of the providers and created the letters himself.

The charges in the indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

Oravec was arraigned today before United States Magistrate Judge Christian F. Hummel, who ordered him released with conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.

If convicted, Oravec would face up to 20 years in prison, a maximum fine of $250,000, and a maximum term of post-imprisonment supervised release of 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by HUD-OIG and prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

U.S. Attorney Duane A. Evans announced that CHRIS WELLS, age 34, of New Orleans, pled guilty to several drug and firearms charges, including conspiracy to distribute and possess with intent to distribute one hundred grams or more of heroin and possessing a firearm in furtherance of a drug trafficking crime.

According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including WELLS, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans. 

On April 13, 2017, officers conducted surveillance of the individuals and observed WELLS conduct a hand-to-hand narcotics transactions with several individuals.  As the officers continued their surveillance, they observed WELLS drive to Chalmette, Louisiana and return to New Orleans where an individual entered WELLS’s vehicle.  After a brief period, the individual exited WELLS’s vehicle and walked toward the intersection of Frenchman and St. Claude Street.  Officers approached the individual, who attempted to run but fell down and spilled approximately an ounce of heroin that he purchased from WELLS.  In a post-arrest statement, the individual admitted that he routinely purchased heroin by calling one telephone that was shared by WELLS and two other persons.  According to the individual, any one of the three would answer the phone and sell him an ounce of heroin on a weekly basis.

Officers and DEA Special Agents obtained a search warrant for WELLS’s residence at 406 East Liberaux Street in Chalmette, Louisiana.  During the search, officers and agents seized 70 grams of heroin, 38 grams of cocaine base (“crack”), and a Smith & Wesson 9 mm semi-automatic pistol.

WELLS faces a minimum term of fifteen years’ imprisonment and a maximum of life imprisonment.  U.S. District Judge Carl J. Barbier set sentencing for July 12, 2018.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney André Jones is in charge of the prosecution.

     TUCSON, Ariz. – Today, Jose Pastrano-Rios, 53, of Mazatlán, Sinaloa, Mexico, was sentenced by U.S. Chief District Judge Raner C. Collinsto 60 months in prison with three years of supervised release to follow. Pastrano-Rios had previously pleaded guilty to one count of bringing in illegal aliens for profit.   

     Pastrano-Rios was arrested on May 19, 2017, for guiding a group of nine illegal immigrants, including two unaccompanied minors, into the United States. Agents were able to determine that Pastrano-Rios was known as “El Bigotes” and was a known human smuggler.  He was previously identified as a foot guide for groups of illegal immigrants who were smuggled into the United States on three occasions in 2016.

     The investigation in this case was conducted by the United States Border Patrol, the United States Department of Homeland Security-Homeland Security Investigations, and the Tohono O’odham Police Department. The prosecution was handled by Rui Wang and Frances Kreamer Hope, Assistant U.S. Attorneys, District of Arizona, Tucson.

CASE NUMBER:           CR-17-0926-RCC          

RELEASE NUMBER:    2018-038_ Pastrano-Rios

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

RENO, Nev. – A wanted fugitive who shot at law enforcement during a high-speed chase through the northeast Reno area was sentenced today to 175 months in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.

Eugene Enrique Corona, 35, of Reno, pleaded guilty in November 2017, to possession with intent to distribute methamphetamine. Corona was a wanted fugitive for violation of his supervised release. In addition, he received a 24 month prison sentence to run consecutive to today’s sentence term for revocation on his supervised release violation.

According to the plea agreement, on January 18, 2017, a Washoe County Sheriff’s Office K9 unit attempted to stop Corona’s vehicle. However, he sped away, drove through a stop sign and a red traffic light, and almost caused two separate accidents — one at Wedekind Road and Sullivan Lane and the second at Wedekind Road and El Rancho Drive. During the pursuit, Corona fired a shot at law enforcement following him, then threw the firearm out of the driver’s side window. Corona lost control of his truck and crashed into the front yard of a residence on the corner of Montello Street and Wilder Street. He attempted to flee the scene on foot, but law enforcement was able to apprehend him. They recovered a Taurus 5 shot revolver near Wedekind Road and El Rancho Drive. Inside Corona’s truck, deputies found two clear bags with approximately 60 grams of methamphetamine and a digital scale.

The case was investigated by the Washoe County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, and the DEA. Assistant U.S. Attorney Megan Rachow prosecuted the case.

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SACRAMENTO, Calif. — After a four-day trial, a federal jury found Brian J. Stone, 59, of Sacramento, guilty today of 13 counts of wire and mail fraud, U.S. Attorney McGregor W. Scott announced.

According to evidence presented at trial, Stone devised a plan to get fire insurance money from State Farm based on false statements about who had performed cleanup work after a fire at 2764 Fulton Avenue in Sacramento in June 2013.

In late 2012, co-defendant Jamal Shehadeh had rented space at that location in the name of a supposed auto parts supply business. Stone, a disbarred attorney, had been helping Shehadeh unsuccessfully fight an eviction action during the months prior to the fire. On the night the eviction took effect, the fire occurred at 2764 Fulton, and the supposed auto parts business later filed an insurance claim with State Farm. While helping with the insurance claim, Stone recruited a local contractor to create a fake invoice and lie to State Farm regarding debris removal work performed after the fire. In a series of emails, Stone directed the local contractor to keep 10 percent of the money that they would get from State Farm from this fraud, and send the other 90 percent to Stone in a cashier’s check.

The scheme was uncovered when the local contractor reported it to State Farm. The FBI later executed search warrants of Stone’s office and email account, finding copies of documents outlining the fraud.

This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.

Two other defendants were charged in the same case. Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony on February 10, 2018, including the 2764 Fulton Avenue fire, and was sentenced to 30 years in prison. Charges against Saber Shehadeh are pending with trial scheduled to start on May 14, 2018. The charges against Saber Shehadeh are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Stone is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on July 12, 2018. Stone faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

OKLAHOMA CITY — A federal grand jury has returned a superseding indictment against Jerry Drake Varnell, 24, of Sayre, Oklahoma, for attempting to use a weapon of mass destruction at BancFirst in downtown Oklahoma City, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.

The FBI arrested Varnell at approximately 1:00 am on August 12, 2017, after he allegedly attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst, at 101 North Broadway.  The arrest was the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the alleged bomb plot developed.  The explosives were inert, and the public was not in danger.  FBI had received information that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government.  Varnell has been in federal custody since his arrest.

On October 17, 2017, a federal grand jury charged Varnell with attempting to use an explosive device to damage and destroy BancFirst’s corporate offices.  If convicted of that charge, he would face a maximum sentence of 20 years in prison and a mandatory minimum sentence of five years’ imprisonment.  He would also be subject to supervised release for up to life.

Today’s superseding indictment adds a second charge: attempting to use a weapon of mass destruction, in particular an explosive or incendiary bomb, against property used in interstate commerce.  If convicted of this new charge, he would face a maximum sentence of life in prison. 

This investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; the Oklahoma Bureau of Narcotics and Dangerous Drugs; and the Oklahoma State Bureau of Investigation.  The FBI worked in conjunction with BancFirst during the investigation.  Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance.  The case is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark R. Stoneman, with assistance from the Justice Department’s Counterterrorism Section.

The public is reminded that these charges are merely allegations and that Varnell is presumed innocent unless and until proven guilty beyond a reasonable doubt.

Reference is made to court records for further information.

CHARLOTTE, N.C. – Today, United States District Judge Max O. Cogburn, Jr. sentenced Boakai Boker, 29, of Charlotte, to 57 months in prison, followed by two years of supervised release, in connection with a stolen identity refund fraud scheme, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.

U.S. Attorney Murray is joined in making today’s announcement by Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office (USSS);  David M. McGinnis, Inspector in Charge of the United States Postal Inspection Service; and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).

According to court documents, trial, evidence, witness testimony, and today’s sentencing hearing, beginning in January 2014, Boker executed a scheme to submit fake tax returns to the IRS, using stolen personal identifying information, including names, dates of birth, and Social Security numbers for dozens of individuals.  For example, according to trial evidence, Boker used the personal information of an individual identified as “E.P.” to file a fake tax return, which resulted in Boker gaining access to more than $40,000 in fraudulent proceeds.  

Court records show that Boker directed the IRS to send the fraudulent refund checks to addresses in Mooresville, N.C. which he controlled.  Boker then deposited the proceeds of the scheme into fraudulent bank accounts to which he had access.  In July 2017, a federal jury convicted Boker of wire fraud, bank fraud, false claims, and aggravated identity theft in connection with the scheme.

U.S. Attorney Murray thanked the Secret Service, USPIS, and IRS-CI for conducting the investigation and the Charlotte-Mecklenburg Police Department for its assistance with this case.

Assistant U.S. Attorney Taylor Phillips of the U.S. Attorney’s Office in Charlotte prosecuted the case.

For 2018, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Among other things, the IRS maintains an identity protection website with information and guidance that can be found at:

https://www.irs.gov/identity-theft-fraud-scams/identity-protection.

GREENEVILLE, Tenn. – On April 17, 2018, David Byron Jones, 61, of Chatsworth, Georgia, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Court Judge, to serve 180 months in federal prison for his role in a conspiracy to distribute methamphetamine (meth) in the Eastern District of Tennessee. 

Jones pleaded guilty in January 2018. According to his plea agreement on file with U.S. District Court, he admitted to being responsible for at least 1.5 kilograms but less than 4.5 kilograms of actual meth. 

In 2016, local, state and federal law enforcement agencies working together began an investigation into an evolving meth distribution network that was distributing multiple kilogram quantities of meth in and around Hawkins County, Tennessee.  Jones, who lived in north Georgia, supplied this organization with kilograms of meth that was then distributed by members of conspiracy, most of whom were from Hawkins County, Tennessee.  One of his distributors, Jonathan Delph, 51, of Rogersville, Tennessee, was sentenced in March 2018 to serve 210 months in federal prison after pleading guilty and admitting to being responsible for at least 1.5 kilograms but less than 4.5 kilograms of actual meth.   

The convictions of Jones and Delph are the result of a 49-count indictment that also charged the following individuals for their roles in the conspiracy:

• Clay Seals, Jr., 51, of Surgoinsville, Tennessee
• Stephanie Bailey, 50, of Hawkins County, Tennessee
• Donna Strong, 54, a/k/a Donna Dunbar, of Surgoinsville, Tennessee
• Curtis Carpenter, 43, of Whitesburg, Tennessee
• Jerry Robinette, 48, of Rogersville, Tennessee
• Edward Smith, 52, of Rogersville, Tennessee
• Tyler Delph, 25, of Rogersville, Tennessee
• Scottie Delph, 49, of Rogersville, Tennessee
• James Michael Whitaker, 54, of Rogersville, Tennessee
• Paul Bledsoe Jr., 43, of Morristown, Tennessee
• William West, 58, a/k/a Bump, of Rogersville, Tennessee
• Frankie Benton, 34, of Hawkins County, Tennessee
• James Dwayne Byington, 50, of Rogersville, Tennessee
• Leonard Brad Eidson, 43, of Bull’s Gap, Tennessee
• Phillip Burton, 49, a/k/a Burger, of Rogersville, Tennessee
• Toby Jones, 40, of Chatsworth, Georgia

All of the individuals charged in this case have been convicted of conspiring to distribute meth.  Several have already been sentenced in U.S. District Court and the remainder are scheduled to be sentenced between now and June 12, 2018.  

The ongoing investigation leading to the indictment was the product of a partnership between Hawkins County Sheriff’s Department, Third Judicial Drug Task Force, Hamblen County Sheriff’s Department, Tennessee Highway Patrol, Appalachian High Intensity Drug Trafficking Area - Rocky Top Task Force, Third Judicial District Attorney General’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and FBI.  Assistant U.S. Attorney J. Christian Lampe represents the United States in court proceedings.  

The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

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